Understanding how life insurance protects in life and death is the first step in creating a strong financial strategy for you and your family’s future.

In simpler times, families relied on retirement plans, defined benefit plans and social security in times of need. Today, the economy has changed and there’s a strong push to become more responsible for our own future financial needs. While it’s not new, life insurance protects in life and death, and it can star in your family’s financial strategy.

A life insurance policy can provide benefits for you and your loved one during your life and after your death. Understanding how and to what extent makes your investment in a policy even more valuable.

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What If the Unthinkable Happens?

How will your family manage the cost of your financial obligations if you die? How will they pay the mortgage, monthly utilities, car payments, tuition and the list goes on? Your death shouldn’t mean a life of debt for your loved ones. A life insurance policy can help you plan financially for all the things you wanted for your family.

Life insurance also covers expenses that will arise as a result of your death. Funeral arrangements, taxes, and administrative costs associated with the processing of your estate can be expensive. Not everyone has the cash on hand to pay these fees. At a time when your family is grieving your death, they don’t need to be grappling with finances. An insurance policy allows you to plan for your family’s financial well-being during the next chapter of their lives.

Closeup portrait of a young couple.

What about Financial Security during Your Life?

A death benefit is not all a life insurance policy can offer. It’s security that’s evolved into a financial tool that can offer current day protection.

Permanent life insurance policies allow you to accumulate cash value at the same time you’re insuring your life. The cash value can be withdrawn or borrowed to fund life’s expenses. It can, however, reduce your policy’s death benefit so it’s best to leave it to fund a financial hardship. In that case, the cash value could also be used to pay the premiums to keep the policy in force.

Permanent life insurance gives you options. You can cash in the policy or convert it to an annuity for an additional income stream. Or, you keep a portion of the death benefit and access some of the cash. Finally, you can continue the policy to protect your family and leave a legacy.

With its flexibility, value throughout life and affordability, life insurance makes sense for financial security and as a death benefit.